Answer: $8820
Explanation:
The total amount of budgeted direct labor for March will be calculated thus:
Production in March = 980
Estimated labor hour = 0.5hour
Labor rate per hour = $18
Total amount of budgeted labor hour will be:
= 980 × 0.5 × $18
= $8820
Answer: D) scatter diagram.
Explanation:
Scatter diagram is a graph with two variables values plotted along two axis in which the pattern reveals if there is any correlation through the resulting points/ dots. It is used to determine the relationship between two variables in which both are along the same curve.
Scatter diagram is used when:
• Numerical data are in pairs.
•To determine relationship between two variables.
•To determine the effect and cause of two variables when they appear similar.
•To determine the root cause of a potential problem.
Answer:
A. $36.28
B. $8.48
Explanation:
a. Calculation for the amount of OASDI taxes to withhold from Crow's pay
OASDI taxes is 6.2%
Hence,
OASDI taxes to withhold = 585.15*0.62
OASDI taxes to withhold = $36.28
Therefore the OASDI taxes to withhold from Crow's pay is $36.28
b. Calculation for the amount of HI taxes to withhold from Crow's pay
HI taxes is 1.45%
Hence,
HI taxes to withhold =585.15*0.0145
HI taxes to withhold=$8.48
Therefore HI taxes to withhold from Crow's pay is $8.48
Answer:
B) Debit work in process inventory $172,000
Credit Factory Wages Payable $172,000
Explanation:
Option A is not correct answer as the question is to record the production activities for direct labor usage instead of recording production and payment of wages. In option A, Wages payable is debited and cash is credited e.g. payment of wages is recorded and first step of recording production is missed.
Option B is the right answer as it appropriately records production activity for the month of June by debiting work in process inventory and crediting factory wages payable.
Option C is not correct answer as it is directly debiting cost of goods sold, which is debited at the time of sale of goods and goods are transferred from finished inventory to cost of goods sold.
Option D is not correct answer as it is directly crediting cash instead of recording payable. At the end of the month, production activities are recorded and payment entry is recorded at the time of payment depending on the Company policy to pay.
Answer:
c. $70,500
Explanation:
The computation of the total work in process account is shown below:
For Job 400
= Beginning balance + direct material + direct labor cost + overhead cost
= $23,000 + $6,000 + $4,000 + $2,000
= $35,000
The overhead = $4,000 × 50% = $2,000
For Job 402
= Beginning balance + direct material + direct labor cost + overhead cost
= $6,000 + $10,000 + $13,000 + $6,500
= $35,500
The overhead = $13,000 × 50% = $6,500
Now the total work in progress would be
= $35,000 + $35,500
= $70,500
